What Is Non-Owners Car Insurance?

If you do not own a car anymore, you might think that you no longer need auto insurance. While, technically, you are not required to have car insurance if you do not have a car, you may still want to purchase a policy. In this situation, the type of policy you would need is called non-owners car insurance. Non-owners car insurance is an affordable type of coverage you should get if you no longer have a car, and here are several things to know about it.

What It Covers

Non-owners car insurance will cover you and any car you drive that you borrow. It will provide coverage if you cause an accident, and it will provide most types of coverage, such as medical insurance coverage. If you plan on borrowing a car every now and then, your friends might be more apt to let you borrow their cars if they know that you have coverage. Additionally, non-owners car insurance will provide coverage if you ever rent a car from a rental car dealer. You should know that non-owners policies do not provide collision or comprehensive coverage, though.

Reasons You Should Get This Coverage

There are several good reasons to consider getting a non-owners car insurance policy, but one of the top reasons is to avoid having a lapse in your auto insurance coverage. Whenever people allow their car insurance to lapse, the insurance companies will charge them higher rates when they eventually purchase policies. A lapse in car insurance automatically puts a driver in the high-risk category to insurance companies.

If you keep non-owners car insurance and need auto insurance in the future, you will have an easy time getting it. If you did not have any insurance coverage, you might have a hard time finding an affordable policy.

It's also important to know that if you need SR-22 insurance due to a DUI or any other driving-related charge, you can get a non-owners car policy for this. This would be the most affordable type of policy to get if you need SR-22 insurance if you do not have a car. If you have a car, this would not be a good option.

Buying auto insurance is an important part of life, even if you do not currently own a car. If you are interested in learning more about non-owners car insurance, or any other type of auto insurance, contact an insurance company today.